President Joe Biden has eaten into America’s’ emergency stocks to bring down gas prices
Recent data published by the Department of Energy shows that the US Strategic Petroleum Reserve (US Strategic Petroleum Reserve) is at its lowest level in 34 years. While Biden has relied on emptying the US’ reserves to bring down gas prices, his administration has no plans to replenish stocks until after next year.
In August, the US removed 18 million barrels from its reserve of crude oil. The current stock stood at 450 millions barrels. Late July saw the White House authorize the sale 20 million barrels, in addition to the other 125,000,000 barrels sold during the first six months.
Gas prices have soared under Biden, with Republicans blaming the president’s green energy policies and crackdown on domestic oil production. Gasoline prices rose by an average $2.28 per gallon from December 2020 to $3.40 one year later. Markets reeling due to the conflict in Ukraine, and Biden renouncing Russian oil imports, the average gallon was $5.
The Treasury Department estimates that prices could have increased by 40 cents per gallon if Biden had not closed the reserve. According to the American Automobile Association’s Monday live numbers, almost 150 million barrels have been sold and prices are back at $3.85.
Some of the oil released by Biden was sold to foreign refiners, with nearly a million barrels going to a subsidiary of Sinopec, a Chinese firm that previously received billions of dollars of investment from an equity fund part-owned by Biden’s son, Hunter.
The Biden administration has sold off around a quarter of the US’ oil reserves this year, and it remains unclear for how much longer the administration plans on draining the stockpile. The White House stated last month that this reserve would not be replenished. “likely”After the financial year 2023.
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